Comparative Analysis Of Company Performance Before And After Mergers And Acquisitions Of State -Owned Enterprises (BUMN)

Feb 27, 2025 by ADMIN 121 views

Comparative Analysis of Company Performance Before and After Merger and Acquisition of State-Owned Enterprises (BUMN)

Introduction

In the era of free trade, competition between companies is getting sharper, forcing companies to continue developing strategies to maintain their existence. One of the investment decisions that can be taken is to expand, both internally and externally. One of the most common external expansion strategies is through mergers and acquisitions. However, not all mergers and acquisitions have succeeded in providing financial benefits according to the company's expectations. This is what drives an analysis of the influence of mergers and acquisitions on the company's financial performance, whether it has increased or even a decline.

Mergers and acquisitions have become a popular strategy for companies to expand their market share, increase their revenue, and improve their financial performance. However, the success of mergers and acquisitions depends on various factors, including the company's financial performance, the quality of the target company, and the integration process. In this study, we aim to analyze the financial performance of State-Owned Enterprises (BUMN) before and after mergers and acquisitions.

Literature Review

Previous studies have shown that mergers and acquisitions can have a significant impact on a company's financial performance. However, the results of these studies are often mixed, and the impact of mergers and acquisitions on financial performance can vary depending on the company's size, industry, and other factors.

One of the key factors that affect the financial performance of a company after a merger or acquisition is the integration process. The integration process can be complex and time-consuming, and it requires significant resources and effort. If the integration process is not managed properly, it can lead to a decline in financial performance.

Another factor that affects the financial performance of a company after a merger or acquisition is the quality of the target company. If the target company is of poor quality, it can lead to a decline in financial performance. On the other hand, if the target company is of high quality, it can lead to an improvement in financial performance.

Methodology

This study uses a quantitative approach to analyze the financial performance of BUMN before and after mergers and acquisitions. The data used in this study were taken from the official financial statements available on the Business Competition Supervisory Commission website (www.kppu.go.id) and the Indonesia Stock Exchange (www.idx.co.id). The sample selection criteria in this study included companies that carried out mergers and acquisition activities in the 2010-2011 period, and had financial reports one year before and one year after the activity with a clear date of merger and acquisition.

The analysis conducted to test the hypothesis of this study using quantitative analysis with descriptive statistical methods. The test was carried out through the data normality test using Kolmogorov-Smirnov and a different test using a paired sample t-test.

Results

The results of this study show that there were significant differences in the tattoo ratio before and after the merger and acquisition, while the NPM, ROE, DR, DER, ROI, and CR variables showed no significant differences.

The results of this study indicate that the merger and acquisition conducted by SOEs do not always guarantee improvement in financial performance in all aspects. The decline in certain ratios, although not significant, gives a signal that companies need to conduct post-Merger and acquisition evaluations to understand the factors that might affect their performance.

Discussion

The results of this study have several implications for SOE management and other stakeholders. Firstly, the study highlights the importance of conducting post-Merger and acquisition evaluations to understand the factors that might affect the financial performance of the company. This is important so that companies can adjust the necessary strategies and improvements so that the goals of mergers and acquisitions can be achieved optimally.

Secondly, the study highlights the importance of integrating acquired assets properly. The efficiency of the use of assets after mergers and acquisitions can be affected by better integration of acquired assets. This can be caused by better integration of acquired assets, but can also be an indication of challenges in the unification of systems and operational processes between companies.

Conclusion

In conclusion, this study provides insight into the financial performance of BUMN before and after mergers and acquisitions. The results of this study show that the merger and acquisition conducted by SOEs do not always guarantee improvement in financial performance in all aspects. The decline in certain ratios, although not significant, gives a signal that companies need to conduct post-Merger and acquisition evaluations to understand the factors that might affect their performance.

Recommendations

Based on the results of this study, we recommend that SOE management and other stakeholders should conduct post-Merger and acquisition evaluations to understand the factors that might affect the financial performance of the company. This is important so that companies can adjust the necessary strategies and improvements so that the goals of mergers and acquisitions can be achieved optimally.

We also recommend that companies should integrate acquired assets properly. The efficiency of the use of assets after mergers and acquisitions can be affected by better integration of acquired assets. This can be caused by better integration of acquired assets, but can also be an indication of challenges in the unification of systems and operational processes between companies.

Limitations

This study has several limitations. Firstly, the study only analyzed the financial performance of BUMN before and after mergers and acquisitions. The study did not analyze the non-financial performance of the company. Secondly, the study only used a quantitative approach to analyze the financial performance of the company. The study did not use a qualitative approach to analyze the financial performance of the company.

Future Research Directions

This study provides several directions for future research. Firstly, future research should analyze the non-financial performance of the company before and after mergers and acquisitions. This is important so that companies can understand the factors that might affect their performance in all aspects.

Secondly, future research should use a qualitative approach to analyze the financial performance of the company. This is important so that companies can understand the factors that might affect their performance in a more detailed and nuanced way.

References

[1] Aaker, D. A. (1984). Strategic market management. Wiley.
[2] Barney, J. B. (1991). Firm resources and sustained competitive advantage. Journal of Management, 17(1), 99-120.
[3] Chandler, A. D. (1990). Scale and scope: The dynamics of industrial capitalism. Harvard University Press.
[4] Collis, D. J. (1991). A resource-based analysis of global competition: The case of the worldwide automobile industry. Strategic Management Journal, 12(4), 349-366.
[5] Grant, R. M. (1991). The resource-based theory of competitive advantage: Implications for strategy formulation. California Management Review, 33(3), 114-135.

Additional Analysis

In addition, tattoos that experience differences indicate that the efficiency of the use of assets after mergers and acquisitions can be affected. This can be caused by better integration of acquired assets, but can also be an indication of challenges in the unification of systems and operational processes between companies.

Through this research, it is expected to provide insight for SOE management and other stakeholders in making decisions related to mergers and acquisitions in the future. By understanding the patterns of financial performance that occurred before and after the action, the company can better prepare itself in the face of increasingly fierce dynamics of competition in the era of free trade.

Implications for Practice

The results of this study have several implications for practice. Firstly, the study highlights the importance of conducting post-Merger and acquisition evaluations to understand the factors that might affect the financial performance of the company. This is important so that companies can adjust the necessary strategies and improvements so that the goals of mergers and acquisitions can be achieved optimally.

Conclusion

References

[1] Aaker, D. A. (1984). Strategic market management. Wiley.
[2] Barney, J. B. (1991). Firm resources and sustained competitive advantage. Journal of Management, 17(1), 99-120.
[3] Chandler, A. D. (1990). Scale and scope: The dynamics of industrial capitalism. Harvard University Press.
[4] Collis, D. J. (1991). A resource-based analysis of global competition: The case of the worldwide automobile industry. Strategic Management Journal, 12(4), 349-366.
[5] Grant, R. M. (1991). The resource-based theory of competitive advantage: Implications for strategy formulation. California Management Review, 33(3), 114-135.

Q: What is the purpose of this study?

A: The purpose of this study is to analyze the financial performance of State-Owned Enterprises (BUMN) before and after mergers and acquisitions. The study aims to provide insight into the factors that affect the financial performance of BUMN after mergers and acquisitions.

Q: What are the key findings of this study?

A: The key findings of this study are that there were significant differences in the tattoo ratio before and after the merger and acquisition, while the NPM, ROE, DR, DER, ROI, and CR variables showed no significant differences.

Q: What are the implications of this study for SOE management and other stakeholders?

A: The implications of this study for SOE management and other stakeholders are that they should conduct post-Merger and acquisition evaluations to understand the factors that might affect the financial performance of the company. This is important so that companies can adjust the necessary strategies and improvements so that the goals of mergers and acquisitions can be achieved optimally.

Q: What are the limitations of this study?

A: The limitations of this study are that it only analyzed the financial performance of BUMN before and after mergers and acquisitions. The study did not analyze the non-financial performance of the company. Additionally, the study only used a quantitative approach to analyze the financial performance of the company.

Q: What are the future research directions based on this study?

A: The future research directions based on this study are that future research should analyze the non-financial performance of the company before and after mergers and acquisitions. This is important so that companies can understand the factors that might affect their performance in all aspects. Additionally, future research should use a qualitative approach to analyze the financial performance of the company.

Q: What are the implications of this study for the business world?

A: The implications of this study for the business world are that mergers and acquisitions are not a guarantee of success. Companies need to conduct thorough evaluations and analysis before and after mergers and acquisitions to ensure that they are achieving their goals.

Q: What are the recommendations of this study for SOE management and other stakeholders?

A: The recommendations of this study for SOE management and other stakeholders are that they should conduct post-Merger and acquisition evaluations to understand the factors that might affect the financial performance of the company. This is important so that companies can adjust the necessary strategies and improvements so that the goals of mergers and acquisitions can be achieved optimally.

Q: What are the key takeaways from this study?

A: The key takeaways from this study are that mergers and acquisitions are not a guarantee of success. Companies need to conduct thorough evaluations and analysis before and after mergers and acquisitions to ensure that they are achieving their goals. Additionally, companies need to integrate acquired assets properly to ensure that they are achieving their goals.

Q: What are the future implications of this study?

A: The future implications of this study are that it will provide a framework for future research on mergers and acquisitions. The study will also provide a basis for future studies on the financial performance of BUMN.

Q: What are the limitations of this study in terms of generalizability?

A: The limitations of this study in terms of generalizability are that it only analyzed the financial performance of BUMN before and after mergers and acquisitions. The study did not analyze the non-financial performance of the company. Additionally, the study only used a quantitative approach to analyze the financial performance of the company.

Q: What are the implications of this study for the academic community?

A: The implications of this study for the academic community are that it will provide a framework for future research on mergers and acquisitions. The study will also provide a basis for future studies on the financial performance of BUMN.